Model Detailed Project Report
NAMKEEN MANUFACTURING UNIT
Prepared by
National Institute of Food Technology Entrepreneurship and Management(NIFTEM) Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana 131028 Ministry of Food Processing Industries, Government of India
1. INTRODUCTION
NAMKEEN MANUFACTURING UNIT
Namkeen is the Hindi word used to describe a savory flavor. The word namkeen is derived from the word Namak (meaning salt). Namkeen is also used as a generic term to describe savory snack foods. Both black and regular white salt are used in Indian cooking, which gives it the salty flavor many people like. Other namkeen snacks common in Indian cuisine include khaara, farsan, chivda, sav, chips and bhujiya. Namkeen of Indore and Ratlam are two snacks that are very well known for their tastes.
Namkeen foods are typically designed to be portable, quick, and satisfying. Processed snack foods, as one form of convenience food, are designed to be less perishable, more durable, and more portable than prepared foods. They often contain substantial amounts of sweeteners, preservatives, and appealing ingredients such as chocolate, peanuts, and specially-designed flavors.
2. MARKET POTENTIAL:
India traditional snacks market has shown tremendous growth in the past couple of years. The market is forecasted to grow with a CAGR of more than 7% in near future. Increasing consumer's awareness towards healthy and packaged traditional snacks has created a huge demand for Namkeen in past couple of years.
Namkeen is the dominant segment, followed by the Extruded Snacks. The market is also segmented into organized and unorganized sector of which unorganized is the dominant market.
The India Snacks Market will be more than INR 1 Billion by the end of 2024. At present Unorganized market is dominating the India snacks market. But this scenario is expected to change during the forecast period of 2020-2024. India Snacks Market is growing due to following factors Lifestyle Changes, Rising Urbanization, Growing Middle Class Population, Local Availability and Availability of Snacks in Small Package Size, Low Price and Company’s Strategies to focus on regional taste.
3. PRODUCT DESCRIPTION
3.1 PRODUCT TYPES & SIZE
Indian consumers seem to have recovered their taste for traditional snacks such as sev, bhujia and namkeen/ mixtures, which are contributing to the impressive growth rate of the fi rms. To elaborate further, namkeens can be characterized into three segments as:
Single product segment: Moong Dal, Chana Dal, Peanut, Nut Cracker, Karare Peanut, Heeng Jeera Peanut, Masala Matar, Mathri, Namkeen Pare, etc. Single product in bhujia: Plain Sev, Bikaneri Bhujia, Aloo Bhujia, Punjabi Tadka, Ratlami Sev, Bhavnagri Gathiya, etc. Lots of mix: Navratan Mix, Khatta Meetha, Chatpata Mix, Magic Mix, Royal Treat, Kanpuri Mix, Bombay Mix, Kaju Mix, Kashmiri Mix, All in One, etc.
Now Namkeen is well known to each and every part of our geography. South and North East part of India has good demand of Namkeen because of mix culture.
Size of the product
Namkeen products are packed in different types of packaging product with different sizes.
Pouch Packaging Size
50 gram 100 gram 250 gram 500 gram 1 KG
3.2 Raw Material Requirement
S.N. Particulars Rate per KG
1 Besan 65-70
2 Oil 90-100
3 Spices 200-250
5 Dal 80-90
6 Peanut 110-120
7 Potato 12-15
Average raw material cost per KG: Rs. 65-70
3.3 MANUFACTURING PROCESS
Procurement of raw material. Preparation of dough with the help of dough mixer. Then with the help of Bhujia machine extruder convert the dough into the shape of required namkeen. After that take it into the frying section. Drying of namkeen After frying, mix all the other ingredients like: peanut, spices etc. as per the different taste of the namkeen. Seasoning of namkeen with the help of seasoning machine. Packaging of goods. Transportation.
4. PROJECT COMPONENTS
4.1 Land
Land required 1200-1500 square feet approx.
Approximate rent for the same is Rs.25000-30000 per month.
4.2 Plant & Machinery
Machine Description Image
Dough Mixer Used for quickly mixing batches of dough or batter.
Bhujia extruder This machine is useful Machine for extruding sev, papdi, ganthia etc. The machine is fitted over frying pan.
Rectangular batch Used for processing tilting fryer with diesel various types Burner of namkeen
Seasoning drum Seasoning machine can be used to season and mix all kinds of Namkeen. It can mix and season food evenly and then discharge them automatically.
Packaging Machine For packaging of namkeen into different size and types of packets.
Note: Cost of the machine is approx. Rs. 12,00,000 excluding GST and other Transportation cost.
4.3 Misc. Assets
S.N. Item Description Rate
1 electricity connection 70,000
2 Furniture and equipment’s 50,000
3 Storage tank, collection tank etc. 30,000
4.4 Power Requirement
The borrower shall require power load of 15 KW which shall be applied with Power Corporation. However, for standby power arrangement the borrower shall also purchase DG Set.
4.5 Manpower Requirement
6-7 Manpower are required for the Namkeen Manufacturing unit.
Includes:
2 Skilled Labour
2 Unskilled Labour
2 Helper
1 Accountant
5. FINANCIALS
5.1 Cost of Project
COST OF PROJECT
(in Lacs)
Own Bank PARTICULARS AMOUNT Contribution Finance
25.00% 75.00% Land & Building Owned /rented Plant & Machinery 12.00 3.00 9.00 Furniture & Fixtures and Other Assets 1.50 0.38 1.13 Working capital 6.67 1.67 5.00 Total 20.17 5.04 15.13
5.2 Means of Finance
MEANS OF FINANCE
PARTICULARS AMOUNT
Own Contribution 5.04
Bank Loan 10.13
Working capital Limit 5.00
Total 20.17
5.3 Projected Balance Sheet
(in Lacs) PROJECTED BALANCE SHEET PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
opening balance 5.86 7.97 10.26 12.86
Add:- Own Capital 5.04
Add:- Retained Profit 2.57 4.86 7.29 9.60 11.96
Less:- Drawings 1.75 2.75 5.00 7.00 9.50
Closing Balance 5.86 7.97 10.26 12.86 15.32
Term Loan 9.00 6.75 4.50 2.25 -
Working Capital Limit 5.00 5.00 5.00 5.00 5.00
Sundry Creditors 2.46 2.83 3.23 3.69 4.19
Provisions & Other Liab 0.50 0.63 0.75 0.90 1.08
TOTAL : 22.82 23.18 23.74 24.71 25.59
Assets
Fixed Assets ( Gross) 13.50 13.50 13.50 13.50 13.50
Gross Dep. 1.95 3.62 5.04 6.25 7.29
Net Fixed Assets 11.55 9.89 8.46 7.25 6.21
Current Assets
Sundry Debtors 3.48 4.18 4.82 5.51 6.23
Stock in Hand 6.28 7.21 8.19 9.35 10.58
Cash and Bank 1.51 1.90 2.26 2.60 2.57
TOTAL : 22.82 23.18 23.74 24.71 25.59
5.4 Projected Cash Flow
(in Lacs) PROJECTED CASH FLOW STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 5.04
Net Profit 2.57 4.86 7.56 10.29 13.27
Depriciation & Exp. W/off 1.95 1.67 1.42 1.21 1.04
Increase in Cash Credit 5.00 - - - -
Increase In Term Loan 10.13 - - - -
Increase in Creditors 2.46 0.37 0.39 0.47 0.50
Increase in Provisions & Oth lib 0.50 0.13 0.13 0.15 0.18
TOTAL : 27.65 7.02 9.50 12.13 14.98
APPLICATION OF FUND
Increase in Fixed Assets 13.50
Increase in Stock 6.28 0.93 0.98 1.16 1.23
Increase in Debtors 3.48 0.70 0.64 0.68 0.73
Repayment of Term Loan 1.13 2.25 2.25 2.25 2.25
Drawings 1.75 2.75 5.00 7.00 9.50
Taxation - - 0.27 0.69 1.31
TOTAL : 26.14 6.63 9.14 11.78 15.01
Opening Cash & Bank Balance - 1.51 1.90 2.26 2.60
Add : Surplus 1.51 0.39 0.36 0.34 (0.03)
Closing Cash & Bank Balance 1.51 1.90 2.26 2.60 2.57
5.5 Projected Profitability
(in Lacs) PROJECTED PROFITABILITY STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 50% 55% 60% 65% 70%
SALES
Gross Sale
Namkeen 116.00 139.50 160.83 183.61 207.82
Total 116.00 139.50 160.83 183.61 207.82
COST OF SALES
Raw Material Consumed 82.11 94.48 107.62 123.16 139.71
Electricity Expenses 3.60 4.14 4.76 5.48 6.02
Depreciation 1.95 1.67 1.42 1.21 1.04
Wages & labour 5.64 6.20 6.82 7.51 8.26
Repair & maintenance 3.48 4.18 4.82 5.51 6.23
packaging 9.60 11.09 12.70 14.45 16.34
Cost of Production 106.38 121.77 138.15 157.31 177.59
Add: Opening Stock /WIP - 3.55 4.06 4.61 5.24
Less: Closing Stock /WIP 3.55 4.06 4.61 5.24 5.92
Cost of Sales 102.83 121.25 137.61 156.67 176.92
GROSS PROFIT 13.17 18.24 23.22 26.94 30.91
Salary to Staff 3.72 4.09 4.50 4.95 5.45
Interest on Term Loan 1.00 0.88 0.63 0.38 0.13
Interest on working Capital 0.55 0.55 0.55 0.55 0.55 Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.74 3.91 5.63 5.97 6.23
TOTAL 10.61 13.38 15.67 16.64 17.64
NET PROFIT 2.57 4.86 7.56 10.29 13.27
Taxation 0.27 0.69 1.31
PROFIT (After Tax) 2.57 4.86 7.29 9.60 11.96
5.6 Production and Yield
COMPUTATION OF PRODUCTION OF NAMKEEN Items to be Manufactured
Namkeen
Production capacity 100 KG per Hour
Working hours per day 8 machine capacity per day 800 KG machine capacity per annum 240000 KG
wastage 5% Of Input
Raw Material Requirement 252632 KG
Final Product
One Packet size (assumed) 500 Grams
Total Packets per annum 480000 Packets
Production of Namkeen
Production Capacity Packets
1st year 50% 240,000 2nd year 55% 264,000 3rd year 60% 288,000 4th year 65% 312,000 5th year 70% 336,000
Raw Material Cost Year Capacity Rate Amount
Utilisation (per KG) (Rs. in lacs)
1st year 50% 65.00 82.11
2nd year 55% 68.00 94.48
3rd year 60% 71.00 107.62
4th year 65% 75.00 123.16
5th year 70% 79.00 139.71
Packaging Charges
Raw Material Packets Amount
(500 Grams) Rate per Packet (Rs. in lacs)
1st year 240,000 4.00 9.60
2nd year 264,000 4.20 11.09
3rd year 288,000 4.41 12.70
4th year 312,000 4.63 14.45
5th year 336,000 4.86 16.34
5.7 Sales Revenue
COMPUTATION OF SALE
Particulars 1st year 2nd year 3rd year 4th year 5th year Op Stock - 8,000 8,800 9,600 10,400
Production 240,000 264,000 288,000 312,000 336,000 Less : Closing Stock 8,000 8,800 9,600 10,400 11,200 Net Sale 232,000 263,200 287,200 311,200 335,200 sale price per Packet 50.00 53.00 56.00 59.00 62.00 Sales (in Lacs) 116.00 139.50 160.83 183.61 207.82
5.8 Working Capital Assessment
(in Lacs) COMPUTATION OF CLOSING STOCK & WORKING CAPITAL PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
3.55 4.06 4.61 5.24 5.92
Raw Material
2.74 3.15 3.59 4.11 4.66
Closing Stock 6.28 7.21 8.19 9.35 10.58
COMPUTATION OF WORKING CAPITAL REQUIREMENT TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 6.28
Less : Creditors 2.46
Paid stock 3.82 25% 0.95 75% 2.86
Sundry Debtors 3.48 25% 0.87 75% 2.61
7.30 1.82 5.47
WORKING CAPITAL LIMIT DEMAND ( from Bank) 5.00
5.9 Power, Salary & Wages Calculation
Utility Charges (per month) Particulars value Description Power connection required 15 KWH consumption per day 120 units
Consumption per month 3,000 units Rate per Unit 10 Rs. power Bill per month 30,000 Rs.
BREAK UP OF LABOUR CHARGES
Particulars Wages No of Total
Rs. per Month Employees Salary
Skilled (in thousand rupees) 14,000 2 28,000
Unskilled (in thousand rupees) 9,500 2 19,000
Total salary per month 47,000
Total annual labour charges (in lacs) 5.64
BREAK UP OF Staff Salary CHARGES
Particulars Salary No of Total
Rs. per Month Employees Salary helper 7,000 2 14,000
Accountant 17,000 1 17,000
Total salary per month 31,000
Total annual Staff charges (in lacs) 3.72
5.10 Depreciation
(in Lacs) COMPUTATION OF DEPRECIATION Description Plant & Machinery Furniture TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -
Addition 12.00 1.50 13.50
Total 12.00 1.50 13.50
Less : Depreciation 1.80 0.15 1.95
WDV at end of Year 10.20 1.35 11.55
Additions During The Year - - -
Total 10.20 1.35 11.55
Less : Depreciation 1.53 0.14 1.67
WDV at end of Year 8.67 1.22 9.89
Additions During The Year - - -
Total 8.67 1.22 9.89
Less : Depreciation 1.30 0.12 1.42
WDV at end of Year 7.37 1.09 8.46
Additions During The Year - - -
Total 7.37 1.09 8.46
Less : Depreciation 1.11 0.11 1.21
WDV at end of Year 6.26 0.98 7.25
Additions During The Year - - -
Total 6.26 0.98 7.25
Less : Depreciation 0.94 0.10 1.04
WDV at end of Year 5.32 0.89 6.21
5.11 Repayment schedule
REPAYMENT SCHEDULE OF TERM LOAN Interest 11.00% Closing Year Particulars Amount Addition Total Interest Repayment Balance ist Opening Balance 1st month - 10.13 10.13 - - 10.13 2nd month 10.13 - 10.13 0.09 - 10.13 3rd month 10.13 - 10.13 0.09 - 10.13 4th month 10.13 - 10.13 0.09 10.13 5th month 10.13 - 10.13 0.09 10.13 6th month 10.13 - 10.13 0.09 10.13 7th month 10.13 - 10.13 0.09 0.19 9.94 8th month 9.94 - 9.94 0.09 0.19 9.75 9th month 9.75 - 9.75 0.09 0.19 9.56 10th month 9.56 - 9.56 0.09 0.19 9.38 11th month 9.38 - 9.38 0.09 0.19 9.19 12th month 9.19 - 9.19 0.08 0.19 9.00 1.00 1.13 2nd Opening Balance 1st month 9.00 - 9.00 0.08 0.19 8.81 2nd month 8.81 - 8.81 0.08 0.19 8.63 3rd month 8.63 - 8.63 0.08 0.19 8.44 4th month 8.44 - 8.44 0.08 0.19 8.25 5th month 8.25 - 8.25 0.08 0.19 8.06 6th month 8.06 - 8.06 0.07 0.19 7.88 7th month 7.88 - 7.88 0.07 0.19 7.69 8th month 7.69 - 7.69 0.07 0.19 7.50 9th month 7.50 - 7.50 0.07 0.19 7.31 10th month 7.31 - 7.31 0.07 0.19 7.13 11th month 7.13 - 7.13 0.07 0.19 6.94 12th month 6.94 - 6.94 0.06 0.19 6.75 0.88 2.25 3rd Opening Balance 1st month 6.75 - 6.75 0.06 0.19 6.56 2nd month 6.56 - 6.56 0.06 0.19 6.38 3rd month 6.38 - 6.38 0.06 0.19 6.19 4th month 6.19 - 6.19 0.06 0.19 6.00 5th month 6.00 - 6.00 0.06 0.19 5.81 6th month 5.81 - 5.81 0.05 0.19 5.63 7th month 5.63 - 5.63 0.05 0.19 5.44 8th month 5.44 - 5.44 0.05 0.19 5.25 9th month 5.25 - 5.25 0.05 0.19 5.06 10th month 5.06 - 5.06 0.05 0.19 4.88 11th month 4.88 - 4.88 0.04 0.19 4.69 12th month 4.69 - 4.69 0.04 0.19 4.50 0.63 2.25 4th Opening Balance 1st month 4.50 - 4.50 0.04 0.19 4.31 2nd month 4.31 - 4.31 0.04 0.19 4.13 3rd month 4.13 - 4.13 0.04 0.19 3.94 4th month 3.94 - 3.94 0.04 0.19 3.75 5th month 3.75 - 3.75 0.03 0.19 3.56 6th month 3.56 - 3.56 0.03 0.19 3.38 7th month 3.38 - 3.38 0.03 0.19 3.19 8th month 3.19 - 3.19 0.03 0.19 3.00 9th month 3.00 - 3.00 0.03 0.19 2.81 10th month 2.81 - 2.81 0.03 0.19 2.63 11th month 2.63 - 2.63 0.02 0.19 2.44 12th month 2.44 - 2.44 0.02 0.19 2.25 0.38 2.25 5th Opening Balance 1st month 2.25 - 2.25 0.02 0.19 2.06 2nd month 2.06 - 2.06 0.02 0.19 1.88 3rd month 1.88 - 1.88 0.02 0.19 1.69 4th month 1.69 - 1.69 0.02 0.19 1.50 5th month 1.50 - 1.50 0.01 0.19 1.31 6th month 1.31 - 1.31 0.01 0.19 1.13 7th month 1.13 - 1.13 0.01 0.19 0.94 8th month 0.94 - 0.94 0.01 0.19 0.75 9th month 0.75 - 0.75 0.01 0.19 0.56 10th month 0.56 - 0.56 0.01 0.19 0.38 11th month 0.38 - 0.38 0.00 0.19 0.19 12th month 0.19 - 0.19 0.00 0.19 - 0.13 2.25 DOOR TO DOOR 60 MONTHS MORATORIUM PERIOD 6 MONTHS REPAYMENT PERIOD 54 MONTHS
5.12 Financial Indicators
FINANCIAL INDICATORS
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year TURNOVER 116.00 139.50 160.83 183.61 207.82 GROSS PROFIT 13.17 18.24 23.22 26.94 30.91 G.P. RATIO 11.35% 13.08% 14.44% 14.67% 14.87%
NET PROFIT 2.57 4.86 7.56 10.29 13.27 N.P. RATIO 2.21% 3.48% 4.70% 5.61% 6.38%
CURRENT ASSETS 11.27 13.29 15.27 17.46 19.38 CURRENT LIABILITIES 7.96 8.46 8.98 9.59 10.27 CURRENT RATIO 1.42 1.57 1.70 1.82 1.89
TERM LOAN 9.00 6.75 4.50 2.25 - TOTAL NET WORTH 5.86 7.97 10.26 12.86 15.32 DEBT/EQUITY 1.54 0.85 0.44 0.17 -
TOTAL NET WORTH 5.86 7.97 10.26 12.86 15.32 TOTAL OUTSIDE LIABILITIES 16.96 15.21 13.48 11.84 10.27 TOL/TNW 2.90 1.91 1.31 0.92 0.67
PBDIT 6.06 7.95 10.16 12.44 14.99 INTEREST 1.55 1.43 1.18 0.93 0.68 INTEREST COVERAGE RATIO 3.92 5.57 8.62 13.36 21.92
WDV 11.55 9.89 8.46 7.25 6.21 TERM LOAN 9.00 6.75 4.50 2.25 - FACR 1.28 1.46 1.88 3.22 -
5.13 DSCR
CALCULATION OF D.S.C.R
1st 2nd 3rd 4th 5th PARTICULARS year year year year year
CASH ACCRUALS 4.52 6.52 8.71 10.82 13.00 Interest on Term Loan 1.00 0.88 0.63 0.38 0.13
Total 5.51 7.40 9.34 11.20 13.13
REPAYMENT Instalment of Term Loan 1.13 2.25 2.25 2.25 2.25 Interest on Term Loan 1.00 0.88 0.63 0.38 0.13
Total 2.12 3.13 2.88 2.63 2.38
DEBT SERVICE COVERAGE RATIO 2.60 2.37 3.25 4.26 5.51 AVERAGE D.S.C.R. 3.60
5.14 Break Even Point Analysis
BREAK EVEN POINT ANALYSIS Year I II III IV V
Net Sales & Other Income 116.00 139.50 160.83 183.61 207.82
Less : Op. WIP Goods - 3.55 4.06 4.61 5.24
Add : Cl. WIP Goods 3.55 4.06 4.61 5.24 5.92
Total Sales 119.55 140.01 161.38 184.25 208.50
Variable & Semi Variable Exp.
Raw Material Consumed 82.11 94.48 107.62 123.16 139.71
Electricity Exp/Coal Consumption at 85% 3.06 3.52 4.05 4.65 5.12
Wages & Salary at 60% 5.62 6.18 6.80 7.47 8.22
Selling & adminstrative Expenses 80% 1.39 3.12 4.50 4.77 4.99
Interest on working Capital 0.55 0.55 0.55 0.55 0.55
Repair & maintenance 3.48 4.18 4.82 5.51 6.23
Packaging 9.60 11.09 12.70 14.45 16.34
Total Variable & Semi Variable Exp 105.80 123.13 141.04 160.57 181.16
Contribution 13.74 16.88 20.34 23.68 27.34
Fixed & Semi Fixed Expenses
Electricity Exp/Coal Consumption at 15% 0.54 0.62 0.71 0.82 0.90
Wages & Salary at 40% 3.74 4.12 4.53 4.98 5.48
Interest on Term Loan 1.00 0.88 0.63 0.38 0.13
Depreciation 1.95 1.67 1.42 1.21 1.04
Selling & adminstrative Expenses 20% 0.35 0.78 1.13 1.19 1.25
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 11.18 12.02 12.78 13.39 14.07
Capacity Utilization 50% 55% 60% 65% 70%
OPERATING PROFIT 2.57 4.86 7.56 10.29 13.27
BREAK EVEN POINT 41% 39% 38% 37% 36%
BREAK EVEN SALES 97.23 99.71 101.40 104.15 107.32
6. LICENSE & APPROVALS
Obtain the GST registration. Additionally, obtain the UDYAM registration Number. FSSAI License. Fire/pollution license as required. Factory License Choice of a Brand Name of the product and secure the name with Trademark if required.
Implementation Schedule
S.N. Activity Time Required
(in Months)
1 Acquisition Of premises 1
2 Procurement & installation of Plant & Machinery 1-2
3 Arrangement of Finance 1-2
4 Requirement of required Manpower 1
Total time Required (some activities shall run 4-5 Months concurrently)
7. ASSUMPTIONS
1. Production Capacity of Namkeen is 800 Kgs per day. First year, Capacity has been taken @ 50%.
2. Working shift of 8 hours per day has been considered.
3. Raw Material stock is for 10 days and Finished goods Closing Stock has
been taken for 10 days.
4. Credit period to Sundry Debtors has been given for 9 days.
5. Credit period by the Sundry Creditors has been provided for 9 days.
6. Depreciation and Income tax has been taken as per the Income tax Act,
1961.
7. Interest on working Capital Loan and Term loan has been taken at 11%.
8. Salary and wages rates are taken as per the Current Market Scenario.
9. Power Consumption has been taken at 15 KW.
10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in the subsequent years.
Limitations of the Model DPR and Guidelines for Entrepreneurs
Limitations of the Model DPR
i. This model DPR has provided only the basic standard components and methodology to be adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food Processing Enterprises Scheme of MoFPI. ii. This is a model DPR made to provide general methodological structure not for specific entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure (proprietorship/partnership/cooperative/ FPC/joint stock company) of his business, details of proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT analysis, detailed market research, rationale of the project for specific location, community advantage/benefit from the project, employment generation and many more detailed aspects not included. iii. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization, output recovery rate and so on. However, these assumptions in reality may vary across places, markets and situations; thus the resultant calculations will also change accordingly.